Capital Budgeting and NPV. (LO 2, 5) Chicks with Kicks is a boxing club for women. The club manufactures all of its own punching bags out of high-quality leather and sand from Los Roques, one of Venezuela's most beautiful beaches. The company is considering investing in a sand refining machine to improve the quality of its punching bags. Details about the machine investment are as follows: The cost of the new machine is $150,000.00. The expected improvements from the new machine would allow for an increase in membership fees. The CFO expects cash flows from the investment in the first three years to be $89,000, $91,000, and $101,000. The company is subject to a 40% tax rate and has a required rate of return of 15% for all investment projects. The CCA rate is 25% and the disposal value of the machine is $11,000. What is the total present value of the predicted cash inflows from the new machine? Is the investment profitable?